Any current/future new fundraising through debt or equity?

No explicit mention of any current or planned new fundraising through debt or equity was made in the call. The company discussed debt levels, mentioning a gross debt of Rs. 583 crore as of Q1 FY24, which increased due to higher sales and working capital needs. The management indicated plans to reduce debt over the coming years through free cash flow generated from operations, but also noted increased working capital requirements due to aggressive growth plans. There is no indication of raising new equity capital; the focus seems to be on internal cash flow management and working capital optimi

Any current/future capex/capital investment/strategic investment?

Indonesia plant CAPEX: US $4 million to $5 million (already communicated last year, to be operational soon). Upgradation investments for Flavour and Nutrition facilities: Relatively small, about Rs. 14-15 crore in total for all plants. Backward integration in Global Ingredients: No large CAPEX by the company; it's done mainly at the vendor's end through a tolling model; only minor CAPEX for storages and related infrastructure. Plans to upgrade nutrition and baby care plants to meet global standards underway to enable catering to larger global customers. Capacity utilization improvement

Future growth expectations in sales/revenue/volumes?

Overall revenue growth guidance is double-digit, targeting 12% to 15% CAGR, with potential for higher double-digit growth if markets grow well. Flavours division expects underlying CAGR of 12% to 14% for the full year. Fragrance business is expected to grow at around 9% to 10% topline and 12%+ bottom-line growth in Europe and India. Volume growth: Fragrance volumes grew 6% QoQ; Flavour volumes flat overall but growing in India. New product development drives Rs. 50-70 crore new business annually. Approximately 15% growth in Flavours is expected largely from new businesses. Growth in India busi

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects double-digit top-line growth going forward, with India business growing in double digits and Europe and India fragrance businesses aiming for 12%+ bottom-line growth. EBITDA margin improvement is anticipated, with target levels above 16%, supported by better pricing strategy and stable raw material costs. Global Ingredient business, currently negative EBITDA, is expected to reach around +10% EBITDA post full backward integration by Q4 FY24. Volume growth: Fragrance volume grew 6% QoQ; Flavours showed flat volume growth overall but with India volumes up and exports flu

Current/ Expected Orderbook/ Pending Orders?

The company is engaged in an RFQ (Request for Quotation) process with a large global FMCG player. The RFQ's expected annual commercial revenue is around Rs. 100 crore. The total bid value for this RFQ is approximately Rs. 700-800 crore (7-8 times the Rs. 100 crore annual revenue). The company expects to secure about one-eighth to one-tenth of this total bid value. Commercial orders from this RFQ are expected to start coming from Q4 FY24 or Q1 FY25. Some trial commercializations may occur in Q3 FY24. The timeline is fluid, affected by client-side delays and testing phases. No new RFQs mentioned

IN US

Sale is live|00:00:00left today

S H Kelkar & Company LtdQ2 FY23Chemicals & Petrochemicals

S H Kelkar & Company Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹135P/E: 38.1Market Cap: ₹1.9K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Overall revenue growth guidance is double-digit, targeting 12% to 15% CAGR, with potential for higher double-digit growth if markets grow well.
→Flavours division expects underlying CAGR of 12% to 14% for the full year.
→Fragrance business is expected to grow at around 9% to 10% topline and 12%+ bottom-line growth in Europe and India.
→Volume growth: Fragrance volumes grew 6% QoQ; Flavour volumes flat overall but growing in India.
→New product development drives Rs. 50-70 crore new business annually.
→Approximately 15% growth in Flavours is expected largely from new businesses.
→Growth in India business expected to be double-digit, reflecting macroeconomic conditions.
→Expansion in global markets through local manufacturing (e.g., Indonesia plant) will support growth and client engagement.
→The pipeline of new projects is in place and working well.

Margin guidance

Category 3

→The company expects double-digit top-line growth going forward, with India business growing in double digits and Europe and India fragrance businesses aiming for 12%+ bottom-line growth.
→EBITDA margin improvement is anticipated, with target levels above 16%, supported by better pricing strategy and stable raw material costs.
→Global Ingredient business, currently negative EBITDA, is expected to reach around +10% EBITDA post full backward integration by Q4 FY24.
→Volume growth: Fragrance volume grew 6% QoQ; Flavours showed flat volume growth overall but with India volumes up and exports fluctuating seasonally.
→The collaboration with a large global FMCG partner through an RFP has potential to generate Rs.100 crore annual revenue eventually, although timelines remain fluid due to delays.
→The company is reviewing its 3-5 year plan but aims for mid-to-high double-digit growth in formulations/new markets, targeting around 20% CAGR in overall revenue over 3 to 5 years.

3 more insights locked — sign up free to unlock

Fundraise plans

→No explicit mention of any current or planned new fundraising through debt or equity was made in the call.
→The company discussed debt levels, mentioning a gross debt of Rs. 583 crore as of Q1 FY24, which increased due to higher sales and working capital needs.
→The management indicated plans to reduce debt over the coming years through free cash flow generated from operations, but also noted increased working capital requirements due to aggressive growth plans.
→There is no indication of raising new equity capital; the focus seems to be on internal cash flow management and working capital optimization.
→In summary, the company aims to manage debt through operational cash flow without announcing any new fundraising at this time.

Order book

→The company is engaged in an RFQ (Request for Quotation) process with a large global FMCG player.
→The RFQ's expected annual commercial revenue is around Rs. 100 crore.
→The total bid value for this RFQ is approximately Rs. 700-800 crore (7-8 times the Rs. 100 crore annual revenue).
→The company expects to secure about one-eighth to one-tenth of this total bid value.
→Commercial orders from this RFQ are expected to start coming from Q4 FY24 or Q1 FY25.
→Some trial commercializations may occur in Q3 FY24.
→The timeline is fluid, affected by client-side delays and testing phases.
→No new RFQs mentioned beyond this; ongoing work continues to reflect expenses in the current quarters.

Capex plans

Yes

→Indonesia plant CAPEX: US $4 million to $5 million (already communicated last year, to be operational soon).
→Upgradation investments for Flavour and Nutrition facilities: Relatively small, about Rs. 14-15 crore in total for all plants.
→Backward integration in Global Ingredients: No large CAPEX by the company; it's done mainly at the vendor's end through a tolling model; only minor CAPEX for storages and related infrastructure.
→Plans to upgrade nutrition and baby care plants to meet global standards underway to enable catering to larger global customers.
→Capacity utilization improvements: Europe operations targeting over 85% utilization; Indian subsidiary has capacity headroom (~45% utilization), to support growth without major expansions.
→No current expansion planned in the European subsidiary; future growth leveraging capacities in India and Indonesia.

How does S H Kelkar & Company Ltd rank vs peers in Chemicals & Petrochemicals?

Pro feature

1S H Kelkar & Company Ltd

Rev 3Mar 3

See full Chemicals & Petrochemicals sector rankings

Want more stocks like S H Kelkar & Company Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio